Headline Durable Goods Orders Down 4.5% in January

This article was originally written by Doug Short. From 2016-2022, it was improved upon and updated by Jill Mislinski. Starting in January 2023, AP Charts pages will be maintained by Jennifer Nash at Advisor Perspectives/VettaFi.

The latest new orders for manufactured durable goods came in at -4.5% month-over-month (MoM), which was worse than the Investing.com -4.0% estimate. The series is up 3.0% year-over-year (YoY). If we exclude transportation, "core" durable goods was up 0.7% MoM, better than the Investing.com 0.1% estimate, and up 1.6% YoY.

New Orders
New orders for manufactured durable goods in January, down two of the last three months, decreased $13.0 billion or 4.5 percent to $272.3 billion, the U.S. Census Bureau announced today. This followed a 5.1 percent December increase. Excluding transportation, new orders increased 0.7 percent. Excluding defense, new orders decreased 5.1 percent. Transportation equipment, also down two of the last three months, drove the decrease, $14.2 billion or 13.3 percent to $92.8 billion. Download full PDF

Durable goods refers to tangible products that can be stored or inventoried and that have an average life of at least three years. Durable goods are typically expensive and therefore tend to be purchased when there is confidence in the economy. New orders for durable goods are a leading indicator, meaning when purchases increase it typically hints at an improvement to the economy. On the flip side, when the new orders trend down it is indicating a lack of confidence in the economy.